Weekly economic update for February 27, 2023

Weekly economic update for February 27, 2023

Highlights of key economic statistics from last week compiled by Putnam Investments.


  • The S&P Global Flash U.S. Composite PMI Output Index rose to 50.2 in February from 46.8 in January.
  • GDP grew at an annual rate of 2.7% in the fourth quarter of 2022, the Bureau of Economic Analysis stated.
  • Existing home sales fell 0.7% in January, according to the National Association of Realtors.


  • Initial jobless claims fell by 3,000 to 192,000 in the week ended February 18, 2023, the Department of Labor found.


  • As of February 22, 2023, of the 445 S&P 500 Index companies reporting fourth-quarter earnings, 303 beat analysts’ estimates, according to S&P Dow Jones Indices.


  • The ZEW Indicator of Economic Sentiment for Germany increased in February.


  • Eurostat noted the euro area annual inflation rate fell to 8.6% in January from 9.2% in December.
  • The European Commission’s Flash Consumer Confidence Indicator for the euro area improved in February.
  • Euro area industrial production fell 2.5% in December compared with November, Eurostat found.


  • The yield on the 10-year Treasury note rose.


  • High energy prices, worsened by the Russia-Ukraine War, increase the risk of stagflation and recession, even as central banks seek monetary policy normalization.
  • Declining liquidity and deteriorating financial conditions, combined with high valuations, are contributing to a substantial uptick in risk asset volatility.
  • Global leverage is at worrisome levels and will eventually need to be paid for, at a time when most developed markets are facing a fiscal drag from the end of post-pandemic stimulus.

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All economic and performance information is historical and does not guarantee future results. The views and opinions expressed are those of Putnam Investments, are subject to change with market conditions, and are not meant as investment advice.

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